Ratio - Return on Assets

Return on Assets RatioRETURN ON ASSETS (ROA):                                                                           onlinecalculator iconOnline Return on Assets Ratio Calculator

The Return on Assets (ROA) of a company determines its ability to utilize the Assets employed in the company efficiently and effectively to earn a good return. The ratio measures the percentage of profits earned per dollar of Asset and thus a measure of efficiency of the company in generating profits on its Assets.

The formula:

Return on Assets = (Net Profit / Total Assets) x 100